Moving job mid year - tax issues

getmore4less

Not sure what the OP has done to get the problem they have but if they put the new salary into a calculator that will tell them where the tax will settle by the end of the year if they use up all unused 20% band.

If they don't use the full amount in the calculator the the NI will be wrong as well.

From what they have said the unused portion has probably been used up.

agrinnall

getmore4less wrote: »

Thought it was obvious by ignore the personal allowance that those were the pay over that amount.

I think I must have missed the word 'ignore' .

t0rt0ise

I keep my salary records on a spreadsheet. I work part-time and get a very small pension from a previous job. So I log it all down each month and let the spreadsheet work out what tax I should pay over the year. I can keep watch then to see if things are on track. I enjoy working out the formulae for the various bits and it’s not difficult.

I’m sure yours wouldn’t be too difficult to work out either. You can fill in what you expect to get in the coming months and see if you’re paying too much tax.

chrisbur

Not sure it would be possible to produce a spreadsheet to cover this situation and even if it was I am sure it would be easier to just work out the tax for each payday.
The OP said "just hoping to understand how it all works" but as yet has failed to give the details asked for in order to explain how the tax was worked out.

getmore4less

chrisbur wrote: »

Not sure it would be possible to produce a spreadsheet to cover this situation and even if it was I am sure it would be easier to just work out the tax for each payday.
The OP said "just hoping to understand how it all works" but as yet has failed to give the details asked for in order to explain how the tax was worked out.

when I did a contract the umbrella were getting the numbers wrong.

I did a spreadsheet for PAYE, using daily rate with variable expenses as the inputs

It worked out the employer and employee NI's, tax, holiday pay and net pay.

quite simple once you know how to do it.

there are 2 ways as you can use straight % or the HMRC PAYE NI/TAx tables.


It was useful as I could adjust(pool) the expenses to maximise the 12% NI not getting taken and forcecast the net effect of taking days off and see how much tax rebate was due if I stopped for the rest of the year.


This one would be even simpler as no expenses or employers NI to work out.
but there may be the added complication of overlap(2 pays in same cycle) and changing tax codes but not that hard to add.

chrisbur

getmore4less wrote: »

when I did a contract the umbrella were getting the numbers wrong.

I did a spreadsheet for PAYE, using daily rate with variable expenses as the inputs

It worked out the employer and employee NI's, tax, holiday pay and net pay.

quite simple once you know how to do it.

there are 2 ways as you can use straight % or the HMRC PAYE NI/TAx tables.


It was useful as I could adjust(pool) the expenses to maximise the 12% NI not getting taken and forcecast the net effect of taking days off and see how much tax rebate was due if I stopped for the rest of the year.


This one would be even simpler as no expenses or employers NI to work out.
but there may be the added complication of overlap(2 pays in same cycle) and changing tax codes but not that hard to add.

I should have said "Not sure it would be possible for me to produce a spreadsheet to cover this situation"
In the case of the OP if they are going to do a spreadsheet to cover it they first need to understand how their tax was worked out and as you say probably some added complications in this.
If the OP wants to understand what has happened they can give the figures which I can check and explain to them.